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    Impairments affect Eidesvik despite contribution from new vessel

    Company News // March 2, 2016

    Eidesvik's President and CEO Jan Fredrik Meling says he is pleased with the company's performance in 2015 and with the company's ability to secure new contracts in the current market, although the company made a loss partly as a result of impairments.

    In fourth quarter of 2015 Eidesvik Offshore had consolidated operating income of NKr 343.2 million, of which NKr 92.8 million was a gain on sale of the vessels European Supporter and Viking II (NKr 259.4 million in the corresponding period in 2014).

    Operating profit before depreciation (EBITDA) was NKr 232.2 million (NKr 132.0 million) and operating profit (EBIT) was NKr -115.6 million (NKr 22.1 million) after impariment charges related to vessels of NKr -290 million (NKr -52.0 million). Profit after tax was NKr -202.3 million (NKr -252.9 million).

    The group’s consolidated operating income as of 31 December 2015 was NKr 1,238.9 million, including gains on the sale of European Supporter and Viking II of NKr 92.8 million and a one-off effect as a consequence of the contract termination for Vantage of NKr 22.2 million.

    The company said that profit in 2015 was positively influenced by profit from the construction vessel Viking Neptun, which was delivered in early 2015. Two supply vessels were traded in the spot market and several have been laid up, which had negative influence on the profit.

    In addition to ordinary depreciation, an impairment of NKr 290 million was been recorded on the company’s fleet of supply vessels.

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